At some point, Freeland will have to tell us we can’t spend what we can’t afford, writes Jack Mintz in the Financial Post. Below is an excerpt from the article, which can be read in full here.
By Jack Mintz, October 1, 2020
Judging from Finance Minister Chrystia Freeland’s Sunday interview on Global TV, I suspect she did not have a good week. She was stuck defending the throne speech’s breathtaking permanent spending plans. Her replies, almost refuting the Liberal promises, failed to allay concerns over the growing mountain of debt and taxes implied by the burgeoning federal budget.
Freeland was spot-on to say “not all spending is equal.” Temporary financial supports provided during the pandemic are very different from new permanent spending. What is not clear, though, is how temporary support won’t become permanently guaranteed income. Paying people not to work can eventually hurt recovery as businesses try to hire workers back. And some support is poorly targeted. As documented by the Fraser Institute, $22 billion in COVID spending may have gone to Canadians with more than $100,000 in income, via CERB, student support and temporary boosts to Old Age Security.
